Sweet Company's outstanding stock consists of 1,700 shares of cumulative 5% preferred stock with a $100 par value and 10,700 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.
Year 1 Dividends Declared & Paid $ 2,700
Year 2 Dividends Declared & Paid $ 6,700
Year 3 Dividends Declared & Paid $ 35,500
The amount of dividends paid to preferred and common shareholders in year 3 is:
Multiple Choice
$16,100 preferred; $19,400 common.
$25,500 preferred; $10,000 common.
$35,500 preferred; $0 common.
$8,500 preferred; $27,000 common.